The National Company Law Appellate Tribunal (NCLAT) in Jet Airways bankruptcy case on Monday said it will pass the order on May 30 on the winning bidder Jalan Kalrock Consortium’s plea seeking to restrain lead lender SBI from encashing performance bank guarantees worth Rs 150 crore, the PTI reported.
Amid continuing differences between lenders of Jet Airways and the consortium, the appellate tribunal also asked both parties to cooperate with each other for implementation of the resolution plan for the airline.
Crisis-hit Jet, which flew for 25 years, shuttered operations on April 18, 2019. The insolvency resolution proceedings against the carrier began in June 2019 and the National Company Law Tribunal (NCLT) approved the resolution plan submitted by the consortium in June 2021. However, the plan is yet to be implemented, resulting in uncertainty over the future of the once-storied carrier.
On Monday, a two-member bench of the NCLAT concluded its hearing on the interim application moved by the consortium against SBI, the lead lender for Jet Airways, regarding encashment of the guarantees.
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The appellate tribunal said it will pass the order on the consortium’s petition on May 30 and said “both the parties will have to take steps ahead for implementation of the resolution plan”.
Senior Advocate Ravi Shankar Prasad representing the consortium said it will deposit Rs 50 crore in an escrow account and requested NCLAT to direct SBI not to encash the performance bank guarantees submitted by it. He said the consortium is taking efforts for the revival of Jet Airways and added that various permissions from the home ministry and other authorities need to be taken. “We also have to appoint our own directors,” Prasad said.
Senior advocate Gopal Jain, who was appearing for SBI, said the consortium was to pay the money by May 15 but the bank has not received any money.
Meanwhile, the validity of Jet Airways’ Air Operator’s Certificate (AOC) expired on Friday and there has been no word so far from the consortium on whether the airline has sought revalidation of the AOC.